GR 32624; (February, 1931) (Digest)
G.R. No. 32624 ; February 7, 1931
HEREDEROS DEL FINADO BENITO LOPEZ, ET AL., plaintiff-appellants, vs. ISABELA SUGAR CO., defendant-appellee.
FACTS
The parties entered into a 30-year milling contract wherein the defendant sugar central guaranteed a 92% sugar extraction rate. During the 1927-1928 milling season, the central proposed reducing the extraction to 91% for efficiency, which most planters accepted. The plaintiffs, however, insisted on the original 92% rate. They alleged that the central discriminated against them by inadequately allocating railroad cars for cane transport, causing harvest delays and financial losses. The central denied discrimination, asserting that car distribution was managed by a committee of planters and that sufficient cars were allotted to the plaintiffs’ hacienda. The central also filed a counterclaim for losses incurred when it had to mill the plaintiffs’ cane at below-capacity rates at the season’s end.
ISSUE
1. Whether the defendant central was liable for damages to the plaintiffs for alleged discriminatory car allocation and harvest delays.
2. Whether the plaintiffs were liable for damages on the defendant’s counterclaim due to the extended milling period.
RULING
1. No. The Supreme Court affirmed the trial court’s dismissal of the plaintiffs’ complaint. The distribution of cars was under the control of a committee of planters as per the contract. While the central’s manager may have favored planters who accepted the 91% extraction, the evidence showed the plaintiffs received adequate cars. Their alleged losses were not proven to be caused by the central’s obstruction.
2. No. The Court modified the trial court’s judgment by absolving the plaintiffs from the counterclaim. The central continued milling the plaintiffs’ cane at the season’s end without prior notice claiming damages or increased costs. Nothing in the contract supported such a claim for damages arising from extended milling, which was deemed a mutual agreement entitling the central only to the contractual 45% share of the sugar.
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